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Jargon Buster

IHT

Inheritance tax, mainly contained in the Inheritance Tax Act 1984.

IIP trust

An interest in possession trust (see also life interest trust): prior to FA 2006, creating an IIP trust was a PET and the life tenant was treated as owning the assets for IHT purposes. Since FA 2006, it is only possible to create an IIP trust during lifetime for certain specified beneficiaries (e.g. disabled).

Income tax

The tax on an individual or trust’s income, after taking into account any allowances, deductions or reliefs.

Indexation allowance

An allowance for CGT to take into account inflation, abolished for individuals by the introduction of the CGT taper relief (now in turn replaced by the flat rate of CGT).

Intestate

Dying without a will or testament, so the relevant laws of succession determine who inherits the estate.

IPDI

An immediate post-death interest; introduced in FA 2006, allowing a testator to leave assets in his/her will to someone who is then treated as owning the assets in the IPDI trust for IHT purposes (like a pre-FA 2006 IIP trust).

Income drawdown

A concept under FA04, allowing money purchase scheme members to drawn income from their fund, leaving the rest invested.

Integration

A scheme where its design takes account of state pension benefits that will be payable.

ICTA

Income & Corporation Taxes Act 1988

ITEPA

Income Tax (Earnings & Pensions) Act 2003

IDRP

Internal Dispute Resolution Procedure

Internal Dispute Resolution Procedure

Most occupational schemes are required to have in place an IDRP to resolve member disputes. The Pensions Ombudsman will expect this to have been used before complaints are taken further.

Articles

The effects of Shari’a law on will drafting & estate planning

More and more families in the UK have some connection to Shari’a law. For the practitioner, the impact of Shari’a law raises certain challenges. First, advisers need to know that the wills they are drafting are valid. Second, Shari’a law can have an impact on standard UK estate planning.

This article summarises the conflict of law rules, to show how Shari’a law can be relevant, and then gives a very brief overview of the Shari’a laws of succession. Practical examples are included to show the issues that practitioners need to look out for.

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